U.S. Recession Looming

Reports that U.S. recession is looming sparked comments that a new serious financial and economic crisis may prove to be worse that the Great Recession in the 1930s, the New York Times reports. Economists believe that at present the U.S. economy is much weaker than three years ago, while only a meager growth was reported since a recovery was reported in mid-2009. Some experts warn that if reports that U.S. recession is looming are true, it will be a real economic disaster because most fundamental economic indicators are at lower levels than in end-2007. Those include figures on jobs, income levels, industrial production and output, according to the newspaper.

President Barack Obama hinted a U.S. recession is looming, saying that the United States should urgently create more jobs and grow the economy. Treasury Secretary Timothy F. Geithner expressed his optimism, however, stating that he has confidence in America’s “regenerative capacity”.

In fact, nobody is interested to witness a U.S. recession looming because it will have negative impact on other major world economies in Europe and Asia, analysts commented. Markets expect better news on unemployment but recent data show that unemployment level in the United States stands at 9.1 percent, which is still alarming, while the average American, who is employed in the private sector, has a shorter work week in 2011 compared to 2007.

Personal income, adjusted for inflation, has decreased by 4 percent, while consumer spending is lower than expected failing to fuel economic recovery.